"Light at the end of the tunnel": S&P 500 and Nasdaq posted their longest streak of gains since January

Major U.S. stock indexes, despite volatility during the day amid U.S. and Iranian statements, managed to stay in the green zone, continuing the growth that began last week. The S&P 500 and Nasdaq Composite ended up posting their longest series of gains since January, according to Dow Jones Market Data cited by MarketWatch.

- The S&P 500 broad market index added 0.5% at the close of trading on April 6, closing in the plus column for the fourth straight day. This is the longest streak since January 27, when it rose for five trading sessions.

- The Nasdaq Composite Technology Sector Index is up just over 0.5%. This is also the fourth day of growth for it.

- The Dow Jones Industrial Average blue-chip index ended trading up 0.4%, its highest level since March 17, according to preliminary data from FactSet.

- The Russell 2000 index of small and mid-capitalization companies rose 0.5%.

- Oil prices, which had jumped after US President Donald Trump's new threats to Iran and The Wall Street Journal's publication about possible strikes on the country's energy infrastructure, slightly reduced their growth by the end of the session. Futures for Mark Brent fell below $110 per barrel, North American WTI was trading at about $112.

Investors are hoping for a last-minute truce - before the deadline Trump has sounded off on Iran - to be brokered, CNBC explains. As Axios reported, regional negotiators are seeking a 45-day ceasefire. Meanwhile, the U.S. leader said over the weekend that unless an agreement is reached by Tuesday evening and the Strait of Hormuz is opened to shipping, the Islamic republic "will have no power plants or bridges left." On Monday, Trump repeated that threat.

Tehran - also on Monday - rejected the idea of a temporary ceasefire, insisting on a full end to the war.

Another statement to which the oil market paid attention: an acceptable agreement with Iran should provide for "free movement of oil," Trump said at a press conference. He emphasized that opening the strait remains a "very important priority," although he has said in recent weeks that it is not among the key conditions for ending the conflict, Bloomberg recalls. Trump also allowed the possibility that the U.S. could charge ships to pass through the Strait of Hormuz. "Why not? We're winners. We've won. Do you understand? They have been militarily defeated," the American leader stated.

"The market seems to be underestimating the magnitude of the turmoil in the global economy," Angeles Investments Chief Investment Officer Michael Rosen told CNBC, "The immediate and medium-term impact of the energy shock seems to me to be under-accounted for - meaning energy prices will remain high for longer than expected.

What's happening in the markets right now, Hightower Advisors Chief Investment Officer Stephanie Link called one of the most interesting developments of the past five weeks. Even though the war in Iran has dragged on and no clear signs of an end have emerged, stocks are rising and Wall Street analysts continue to raise expectations for how much money the largest U.S. corporations will make this year, she pointed out. "I think the interesting thing is that strategists have been improving their earnings forecasts throughout this period. They believe [companies'] earnings will rise 20% this year," Link told MarketWatch. At the same time, stock valuations are being squeezed - the S&P 500 multiple has fallen from 23 to 19, she pointed out.

Stock markets see "light at the end of the Middle East tunnel," commented Interactive Brokers senior economist Jose Torres on the dynamics.

This article was AI-translated and verified by a human editor